Note. Signal bars are shaded by counting whole chart intervals back from the chart clock rather than by counting bars, because a study cannot know on an earlier bar how many bars follow it, so on a market that closes, or when the clock is well past the newest bar, fewer bars are shaded; and the readout table sits in the nearest of four corners at the chart's own text size, because a table here has no centre positions and no size setting.
This setup is a five-filter momentum screen drawn on the price chart. A bar is flagged Long only when all five agree on strength: the percentage change from the close 250 bars back is above the threshold, RSI is above its overbought level, the Money Flow Index is above its overbought level, CCI is above its overbought level, and the bar's volume is larger than its exponential average multiplied by the volume multiplier. A Short needs the mirror image on every filter: the change below the negative threshold and each oscillator below its oversold level, again on a volume surge. The two can never fire on the same bar, because the change cannot be above the threshold and below its negative at once.
The percentage change is the move over 250 bars divided by the current close. RSI is computed on the close and given a simple average, MFI on the typical price (high, low and close averaged) weighted by volume, and CCI on the typical price with its own simple average. The volume average is an exponential average seeded with the simple average of its first values. A Supertrend line rides the price, green while the trend is up and red while it is down, breaking at each flip.
Over the most recent bars, set by Display Length, the study redraws MFI, RSI with its average, and CCI with its average as small panels in price space below the candles, each with its overbought, middle and oversold reference lines and a caption with the latest reading. A volume histogram sits above the candles with the volume threshold (the exponential average times the multiplier) running through it, and a caption giving the newest bar's buying and selling share, its volume, and that threshold, labelled Avg Vol. A five-row table in a corner lists the latest value of each filter, coloured green, red or grey by its verdict.
How to read Momentum Investing Setup
A Long triangle under a bar, with the candle tinted light green, means price change, RSI, money flow, CCI and volume all pointed up on that bar: the broad, high-volume strength a momentum investor looks for. A Short triangle above a bar, with a light red candle, is the same agreement to the downside. Signal bars inside the Display Length window are also shaded in the background. The Supertrend line gives a trailing level to judge whether a move is holding.
The table shows which filters are already in place and which are missing, which is useful between signals. The volume filter is strict: with the multiplier at 5 a bar needs five times its average volume, so signals are rare and a chart can go a long stretch without one. Nothing can be flagged on the first 250 bars of a chart. The small panels are scaled to the recent price range, so read them for shape and for position against their own reference lines, not against the price axis.
Settings
- Above/Below %
- The 250-bar percentage change a bar must exceed for a long signal, or fall below the negative of for a short signal. Lower it on intraday charts.
- RSI Display
- Draw the RSI panel: the curve, its average, its reference lines and its caption. The RSI filter still applies when this is off.
- RSI Length
- Bars in the RSI calculation. A longer length gives a smoother, slower reading.
- RSI SMA Length
- Bars in the simple average drawn with the RSI curve. It does not affect the signals.
- RSI Overbought
- The RSI level a long signal must be above, also drawn as the upper reference line.
- RSI Oversold
- The RSI level a short signal must be below, also drawn as the lower reference line.
- RSI Vertical Offset
- How far below the lowest price of the display window the RSI panel sits, in multiples of the recent price range.
- RSI Height
- How tall the RSI panel is drawn, as a multiple of the recent price range.
- MFI Display
- Draw the Money Flow Index panel: the curve, its reference lines and its caption. The MFI filter still applies when this is off.
- MFI Length
- Bars in the Money Flow Index window.
- MFI Overbought
- The MFI level a long signal must be above, also drawn as the upper reference line.
- MFI Oversold
- The MFI level a short signal must be below, also drawn as the lower reference line.
- MFI Vertical Offset
- How far below the lowest price of the display window the MFI panel sits, in multiples of the recent price range.
- MFI Height
- How tall the MFI panel is drawn, as a multiple of the recent price range.
- CCI Display
- Draw the CCI panel: the curve, its average, its reference lines and its caption. The CCI filter still applies when this is off.
- CCI Length
- Bars in the Commodity Channel Index calculation on the typical price.
- CCI SMA Length
- Bars in the simple average drawn with the CCI curve. It does not affect the signals.
- CCI Overbought
- The CCI level a long signal must be above, also drawn as the upper reference line.
- CCI Oversold
- The CCI level a short signal must be below, also drawn as the lower reference line.
- CCI Vertical Offset
- How far below the lowest price of the display window the CCI panel sits, in multiples of the recent price range.
- CCI Height
- How tall the CCI panel is drawn. CCI runs on a wider scale than RSI and MFI, so this is kept small.
- Display MA Line
- Draw the volume threshold, the exponential average times the multiplier, as a line through the volume histogram.
- Type
- Regular Volume colours each histogram bar by the candle's direction; Buying/Selling Volume overlays the selling share in red; None hides the whole volume panel: histogram, threshold line and caption.
- MA Length
- Bars in the exponential volume average that the volume filter compares against.
- MA Multiplier (x)
- How many times its average the volume must be for a signal. 1 means any above-average bar qualifies; 5 asks for a strong surge.
- Volume Vertical Offset
- How far above the highest price of the display window the volume histogram starts, in multiples of the recent price range.
- Volume Height
- How tall the tallest histogram bar is drawn, as a multiple of the recent price range.
- Supertrend Display
- Show or hide both halves of the Supertrend line. The line plays no part in the signals.
- ATR Length
- Bars in the average true range that sets the Supertrend's distance from price.
- Factor
- Multiple of the average true range between price and the Supertrend line. Larger values flip less often.
- Position
- Where the readout table sits. Only the four corners are available, so Top Left and Middle Left use the top left, Bottom Left the bottom left, Bottom Center and Bottom Right the bottom right, and every other choice the top right.
- Size
- The text size chosen for the table. The chart fits the table's text to its cells itself, so this setting does not change the drawing.
- Display Length
- How many recent bars the small panels and the volume histogram cover, and how far back the signal shading is drawn.
Frequently asked questions
Why are there no signals on my chart?
All five filters must agree on the same bar, and the volume filter asks for five times the average volume by default. That is rare on most instruments. Lower MA Multiplier (x) or the percentage threshold to see more signals, and remember that nothing can fire on the first 250 bars of a chart.
What do the curves below the candles show?
They are MFI, RSI and CCI redrawn in price space over the most recent bars, each with its overbought, middle and oversold lines. Their height is scaled to the recent price range, so the price axis does not read their values; the caption beside each panel gives the latest reading.
Does the Supertrend line affect the signals?
No. The signals come only from the five filters. Supertrend is drawn as a trailing level to judge whether a move is holding after a signal.
Is the percentage change measured from the old close?
No. The move over 250 bars is divided by the current close, not the close 250 bars back, so after a rise the figure is smaller than a plain rate of change and after a fall it is larger in size: a close that has doubled reads 50%, not 100%.
